Dongfeng Motor Corporation and Detroit Electric Holdings Ltd announced today the two companies have agreed to jointly research, develop, market and sell Pure Electric Vehicles (PEVs) in China, based on Detroit Electric’s advanced electric drive technology.
Based upon the strategic agreement signed today, Dongfeng Motor Corporation will test and validate Detroit Electric’s patented electric drive technology with the intention to produce and market Dongfeng’s Pure Electric Vehicles (PEVs).
The parties are also in discussions to form a joint venture company to manufacture, assemble, produce and supply the electric drive technology to the Dongfeng Group and other vehicle manufacturers.
In addition, the two companies will study and explore the market entry strategy under the Dongfeng and Detroit Electric brand.
Detroit Electric Chairman and CEO, Albert Lam, said: “We are excited at the opportunity to partner with yet another world-class automaker in order to accelerate the wide adoption of Detroit Electric’s electric drive technology and propel the PEV industry forward.”
“This validation process is a major proof point for the technical leadership and commercial readiness of our electric motor drive technology. We look forward to working closely with Dongfeng and exchange our experiences,” he said.
This strategic cooperation with Dongfeng comes hot on the heels of Detroit Electric’s March 30 signing of Strategic Licensing and Contract Assembly Agreements with Proton, worth RM1.2 billion (US$331 million) annually.
Those agreements provided Detroit Electric with vehicle platforms and its first manufacturing base, and put it on the fast track to introduce a full line of innovative, practical and affordable pure electric vehicles to the global market.
Detroit Electric targets to sell 45,000 of vehicles across Europe, the United States and Asia by next year; increasing to 270,000 by 2012.
“This cooperation with Dongfeng allows us to work closely with a strong partner in China to explore various ways to enter the world’s largest vehicle market,” said Lam.
China is committed to alternative clean vehicles and is offering financial and other incentives to encourage the adoption of zero emission vehicles. The country is set to become one of the key markets for Detroit Electric to realize its growth over the next five years.